MBS Jewellers Director sent to judicial custody in money laundering case

Hyderabad, Oct 19 (IANS) A city court on Wednesday sent MBS Jewellers director Sukesh Gupta to judicial custody till November 5 in a money laundering case.

The Enforcement Directorate (ED) had arrested Gupta late on Tuesday night after searches at the Musaddilal and MBS Jewellers.

The ED officials recorded his statement and he was produced before a court dealing with ED cases at Nampally Court Complex. The magistrate sent him to judicial custody for 14 days. He was later shifted to Chanchalguda Central Jail.

The ED conducted searches after almost 30 hours and found several alleged irregularities and violations in the purchase of gold from Metals Minerals Trading Corporation (MMTC) Ltd, a public sector enterprise.

According to sources, diamonds and gold worth Rs 100 crore seized from three MBS showrooms were not accounted for. Officials also reportedly seized documents of properties valued at Rs 50 crore acquired under benami names by Gupta and Anurag Gupta, Directors of MBS Jewellers.

A case for violating the PMLA and FEMA was registered against them. They allegedly diverted loans secured from banks to other companies and benami accounts to purchase land in Telangana and Andhra Pradesh.

MBS Jewellers allegedly committed the same offence in 2014 too. It allegedly received gold on credit from MMTC Ltd to maintain forex positions without paying an additional five per cent tax. The central agency also reportedly identified fake invoices and vouchers pertaining to jewellery sales to customers.

The ED investigated their bank transactions and reportedly found that they deposited demonetised currency in banks and exchanged them for new notes.

The alleged irregularities by MBS Jewellers and other sister companies in buying gold in collusion with the officials of MMTC allegedly caused a loss to the tune of over Rs 504 crore, including interest, to the MMTC.

In August last year, the ED had attached properties worth Rs 363.51 crore of MBS Jewellers, MBS Impex and other group entities under the PMLA.

The action was taken on the basis of an FIR registered by the ACB and the CBI against Sukesh Gupta and his companies for defrauding MMTC. The CBI had filed the charge sheet in 2014.